NZF Group (NZF and NZF010)

[Xerof]

You won't find imminent under E in the dictionary.......

The share price is telling the story - believe that, not the company foghorn (invessi)

Westpac can and will stay, as long as they hold sufficient and watertight, realisable security. Watch out for the day it all goes tits up

[Tony Two Gloves]

I think that day has arrived...... Great news for shareholders indeed Invessi !!

NZF
22/09/2011 16:45
GENERAL

REL: 1645 HRS NZF Group Limited

GENERAL: NZF: NZF Group Limited (NZF) - Continuous Disclosure

NZF announced today that it has written down the carrying value of the
Group's investment in NZF Money Limited (NZFML) to $nil and has discontinued
including the results of NZFML in its consolidated financial statements with
effect from 22 July 2011, being the date that NZFML was placed into
receivership, as NZF no longer has direct control over NZFML's affairs.

This follows the receipt of legal, tax and accounting advice and the release
of the Receivers' First Report dated 21 September 2011 by KordaMentha,
Chartered Accountants, which indicated that there was unlikely to be a return
to unsecured creditors of NZFML.

The effect of the above will result in an impairment loss on investments of
$5.074 million being recognised by NZF in its individual parent company
financial statements for the year ending 31 March 2012 and a loss on
discontinued operations of $1
0..700 million being recognised by NZF in its
consolidated financial statements for the year ending 31 March 2012.

NZF would like to reiterate that the receivership of NZFML has had minimal
impact on the operation of NZF's profitable Homeloans Division and on NZF's
50% strategic investment in MPMH Limited (Mike Pero Mortgages).

A copy of the Receivers' First Report dated 21 September 2011 released by
KordaMentha, Chartered Accountants, can be viewed online at
www.companies.govt.nz.

ENDS
End CA:00214112 For:NZF Type:GENERAL Time:2011-09-22 16:45

[minimoke]

I think that day has arrived...... Great news for shareholders indeed Invessi !!

TTG, I fear I must take you to task. You have omitted the part about the immeninet JV agreement!

Edit: Apologies TTG - there was nothing in the anouncement about the JV. Now theres a surprise!

[Enumerate]

If you read the receiver's report - he notes 28.3M of loan receivables, 16.4M of debenture liabilities.

The loan receivables have had impairments registered against them, by NZF, over the past few years.

Other various assets more than cover other various liabilities - noting the IRD has yet to make a claim.

The Receiver notes: "At this time it is not possible to accurately forecast the level of recovery from the loan book assets". Yet has taken the liberty to note: "... it is unlikely that there will be a return to unsecured creditors".

So, it seems that the receivers are forecasting at least a 60% impairment across the loan book. Given that the vast majority of this book is 1st mortgage, with the next big tranche being 2nd mortgages - it would appear that, according to the receiver, the quality of the loan book is very poor, indeed.

However, I think I will take a different view .... rather than rush off with the "adult diaper" brigade, I think a bet AGAINST the Receiver would be how I want to place my money. I wonder if you can buy NZF Money debt at 10cents on the dollar?!?

[Xerof]

I think the impact of the accounting entries is to wipe out equity at the parent coy level...someone please correct me if i am wrong

Recoveries under first mortgage security in this environment are often coming up short so no cigars if the valuations are old and unrealistic

10 cents might get you a return, but 50 cents doesn't help the cause much - i think its gone

[Enumerate]

These Insolvency firms have been the real crooks in this GFC ... they produce these noddy reports that contain no real analysis of the situation, they paint the darkest possible view, present no facts or basic logic to justify their position; they proceed to sell off good assets at bargain prices, extract high fees or go off chasing shadows ... they leave a trail of misery. Some have a clue ... but most don't. There is actually alot to be said for US style Chapter 11 reorganisation.

[Tony Two Gloves]

I don't think even Bernard Whimp would offer 0.10 on this!

Does anyone really believe a JV deal will happen? I don't think any large corporate would want to be associated with them after they have recklessly lent out the publics money and investors will suffer losses.NZF have no bargaining power and wasn't part of the proposed deal to provide capital for NZF Money? Not much point now....you have to love the 4.45PM market announcements, at least it wasn't on a Friday!

Mini, isn't that an annoncement coming through now? Oh no it was just someone emailing me the winning Lotto numbers.....

[Tony Two Gloves]

Serepisos should have gone to NZF for a loan, looks like they will lend to anyone and he could have used his 2007 valuations!!

[invessi]

Serepisos should have gone to NZF for a loan, looks like they will lend to anyone and he could have used his 2007 valuations!!

TTG, I am starting to wonder if you are the disgruntled borrower from NZF that threatened to take the company, particularly Mark Thornton to task for not meeting some expectation that you had, you are obviously not a shareholder and you are going out of your way to run the company down, how about coming clean and declaring your interest!

[Tony Two Gloves]

After you Invessi, I am intrigued how you can continually support the company and the statements it makes when the facts have made liars out of them. So what is your connection and why do you support them so strongly?